Q1. Currently, the BEA uses 2012 as the base year for GDP calculations. Inflation is almost always positive in the US. Given these statements, is real or nominal GDP going to be greater prior to 2012? How about after 2012? how about for 2012?

Q2. Discuss two potential shortcomings of using GDP as a proxy for the standard of living (i.e. why is GDP not a perfect measure of the standard of living of a country?)

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The detailed answer for the above question is provided below A 1 Prior to 2012 nominal GDP is going ... View the full answer